2022 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Watts
HB 401: Elective Income Tax for Pass-Through Entities

Item 274 #6h

Item 274 #6h

First Year - FY2023 Second Year - FY2024
Department of Taxation FY2023 $50,000 FY2024 $0 GF

Page 272, line 42, strike "$65,177,884" and insert "$65,227,884".


(This amendment provides funding from the general fund in the first year for House Bill 401, which permits a qualifying pass-through entity to make an annual election in taxable years 2021 through 2025 to pay an elective income tax at a rate of 5.75 percent, at the entity level for the taxable period covered by the return. The bill also creates a corresponding individual income tax subtraction for taxable years 2021 through 2025 for any amount of income derived from a pass-through entity having Virginia taxable income if such pass-through entity makes such election and pays the elective income tax imposed at the entity level. This is a placeholder amendment until a final fiscal impact statement is produced.)